Copper prices are showing strength today, and in general of late. And strong copper prices tend to bode well for the Materials Sector (NYSEARCA:XLB).
Not only is copper a key metal tied to material stocks / companies, but many believe that is an important indicator of strength (or weakness) in the overall economy.
In the chart below, I take a look at the Basic Materials ETF (XLB). It’s a 3 year chart that highlights a bullish ascending triangle pattern and materials sector breakout (points 1 & 2).
The breakout level is a important to watch, as it should hold if this is for real. Â So far, so good. And if both continue to move higher, it would bode well for the sector… and the economy.
$XLB Basic Materials ETF Chart – Breakout!
Twitter:Â Â @KimbleCharting
Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
